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RIM Tablet Need Not Compete With iPad

Stocks in this article: RIMM AAPL GOOG MRVL ADBE NOK MOT

(The following is a reprint of a story first published Sept. 24. Some details may be out of date, though the main thesis is still valid.)

NEW YORK ( TheStreet) -- Speculation is swirling that Research in Motion (RIMM) will be announcing its own tablet computer, the BlackPad. Here's why RIM needs a tablet offering. And why it doesn't have to compete with Apple's (AAPL) iPad or Google (GOOG) Android tablets to be successful.

RIM will be launching its own tablet computer in the near future. And through leaks and speculation, many commentators have identified its probable characteristics: 7-inch touch screen, Marvell (MRVL)-based ARM chip (likely the same one powering the Torch), running the QNX operating system (not BlackBerryB OS 6), Wi-Fi but no 3G radio (works on 3G by tethering to a BlackBerry device).

It seems everyone is comparing the BlackPad to the iPad and saying the BlackPad won't be competitive. This is not a valid assumption. I don't expect the BlackPad (or whatever it's finally called) to compete directly with iPads and Android tablets in the general consumer space. RIM is savvier than that and has done its homework. Its primary target is business users. So will there be some challenges for RIM in the market? Sure. But it won't be the disaster that many predict. I expect it to be successful in the rather large niche it is targeting. Here are some strengths and weaknesses.

Why run on the QNX OS vs. the BlackBerry OS?

Rumor has it that the BlackPad will run a QNX OS and not the newly released BlackBerry OS 6. There are two key two issues with that approach. First, does it tie into the BES/BB infrastructure so companies can make sure they are compatible with existing BlackBerry installations for deployment, management, security, etc.? And does BlackPad have the needed business apps, or is it targeted at the consumer space?

QNX, recently acquired by RIM, has extensive expertise in embedded systems for auto, entertainment, controllers, etc. Its OS runs many real-time operating systems products. And it has lots of multimedia expertise. So no doubt, the company can design a compelling environment for a tablet. But is it a BlackBerry? Or is it just a tablet unrelated to its BlackBerry sibling? That could prove to be the deciding factor for businesses choosing the device.

Many commentators have indicated that running the QNX OS means there will be few apps available for the device. This is not an accurate assumption. I expect many applications to be available for the device from day one, as it is highly likely it will include a Java Virtual Machine (making it backward compatible with many BlackBerry apps), a WebKit browser (allowing HTML5-based cloud-computing apps), and Adobe (ADBE) Flash compatibility (which QNX has extensive experience deploying). It may even include VoIP (making it compatible with MVS) and video conferencing. So BlackPad will likely come to market with loads of potential apps and be largely BlackBerry -apps-compatible as well.

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